According to classical macroeconomic theory,the flexible interest rate
A) is the incentive that encourages businesses to obtain credit.
B) will tend to fall when the quantity of credit demanded exceeds the quantity of credit supplied.
C) will tend to rise when the supply of credit exceeds the demand for credit.
D) ensures that saving cannot exceed investment spending for extended periods of time.
Correct Answer:
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Q110: If the aggregate demand curve shifts to
Q111: When we draw an aggregate demand curve,what
Q112: It is _ that in the classical
Q113: The long-run aggregate supply curve is
A)upward sloping.
B)horizontal.
C)downward
Q114: The line segment RS describes the region
Q116: If aggregate demand increases and as a
Q117: In analyzing recessions,Keynes' view was that
A)the economy
Q118: According to the Keynesian model,
A)aggregate demand plays
Q119: The line segment ST describes the region
Q120: Macroeconomic equilibrium occurs when
A)the quantity of output
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